The industry chamber Assocham commended the Union Budget 2026–27 for its substantial increase in capital expenditure to Rs 12.2 lakh crore. This budget addresses concerns regarding infrastructure gaps and logistics costs by introducing new freight corridors, national waterways, and city economic region development. Assocham described the budget as forward-looking and reform-driven, emphasizing the importance of sustained public investment, manufacturing growth, MSME support, and a simplified regulatory framework.
The focus on developing city economic regions, especially in Tier II and Tier III cities, is expected to unlock economic benefits, drive regional growth, and create new urban economic hubs. Assocham highlighted that these initiatives will have a positive impact on growth, attracting private investment and enhancing long-term productivity. President N.K. Minda stated that the budget provides a credible reform roadmap for sustaining India’s growth momentum, focusing on infrastructure, manufacturing clusters, and MSME support.
The budget’s combination of public investment, structural reforms, and fiscal discipline aims to facilitate higher private investment, strengthen supply chains, and generate quality employment opportunities across various sectors and regions. The proposal to establish dedicated rare earth corridors in mineral-rich states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu is seen as crucial for enhancing strategic supply chains and reducing import vulnerabilities.
Additionally, initiatives such as ISM 2.0 and Biopharma Shakti are expected to bolster India’s presence in strategic sectors, promote technology development, and create skilled employment opportunities. The budget’s emphasis on MSMEs as growth champions, the Rs 10,000 crore SME Growth Fund, and measures to enhance financing options for MSMEs are viewed positively by the industry. These steps are anticipated to facilitate MSMEs in scaling up, integrating with global value chains, and contributing significantly to exports and employment.
Assocham Secretary General Saurabh Sanyal highlighted the alignment between industry feedback and policy action in the budget. He mentioned that measures related to MSME financing, tax simplification, capital market development, and services-led employment will enhance the ease of doing business and boost investor confidence. The focus on scale, productivity, and competitiveness is expected to position the economy well to navigate global uncertainties and advance India’s long-term development goals.
